By Comptroller Susan Combs
Texas Insider Report: AUSTIN Texas Its no secret that Ive supported Texas hosting a Formula 1 race since 2008. I believe a well-organized event of this magnitude can be a tremendous benefit to Texas if done right. Investors
businesses and event organizers want to come to Texas because weve developed an economic climate that is attractive our state is a great location for events and weve got space and potential to grow.
A tool for recruiting large events to the state is the Major Events Trust Fund (METF) which was created by the Texas Legislature in 2003. In the past two years eligible METF recipients have included the NFL Super Bowl XLV the NBA All-Star Game and the NCAA Mens and Womens Final Four tournaments.
The support provided by the METF comes from sales hotel beverage and other tax revenue generated by out-of-state visitors who attend the event.
When the United States Grand Prix was formally announced it was the only Formula 1 race scheduled in the U.S. During the past 18 months organizers have taken many steps to bring high-profile motor racing to Central Texas including the development of the Circuit of the Americas and the announcement of the global MotoGP and V8 Supercar race series starting in 2013.
The recent announcement of an annual Formula 1 race in New Jersey is a concern as additional races have the potential to reduce the number of attendees to a Texas race thereby decreasing the economic impact. Additionally the reports of a slowdown in construction at the Circuit of the Americas and recently publicized disagreements between the race rights-holder and the circuit developers have prompted speculation
about whether the Austin race will even occur.
The ongoing controversies are a concern and we will continue to monitor them.
Let me state clearly: We have not paid out any money for the Formula 1 event. The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race. The state of Texas will not be paying any funds in advance of the event.
Further as is the case with all METF events each application will be reviewed and analyzed for its likely economic impact and only after the race occurs would any funds be disbursed.
If an METF application is submitted it will be thoroughly vetted and economic impact data scrutinized based on the actual circumstances for that event.
Ultimately I am responsible for protecting the interests of Texas taxpayers first and foremost. I will not allow taxpayer dollars to be placed at risk. My position on that has not changed.
About Susan Combs Texas Comptroller of Public Accounts
Since being elected Texas Comptroller in 2006 and re-elected in 2010 Combs has driven sweeping reforms in state purchasing and contracting. The Comptroller also is focused on ensuring the fair collection of taxes. In 2007 a law was passed that expanded the Comptrollers enforcement capabilities for beer and tobacco sales tax helping the agency identify more than $260 million due to the state.
Through comprehensive reports on issues such as energy water health care and public education Combs office provides insight into long-term solutions for the continued economic vitality of Texas. She is deeply concerned about the impact of federal
mandates and policy proposals on the states future and has provided in-depth analyses of potential costs and their impact.
Prior to serving as Agriculture Commissioner Combs served in the Texas Legislature where she introduced and passed government accountability reform and protected Texas landowners by authoring the states landmark private property rights legislation.
